Student LoansJasmine Merali

Historical Background

1643—First scholarships Instituted by Lady Anne Radcliffe Mowlson at Harvard University.

1958--National Defense Education Act Established first federal student loans program.

1965—Higher Education Act Authorized most student financial aid programs.

1972—Basic Educational Opportunity Grant

Began first federal need analysis formula. Origin of the Pell Grant

1992—Higher Education Amendments

Added FAFSA, Direct Lending pilot project, and unsubsidized Stafford loans.

1993—Student Loan Reform Act

Established direct lending.

2005—Higher Education Reconciliation Act (HERA)

Cut $12.7 billion from student aid. Increased rates of Stafford and PLUS loans to 6.8% and 8.5%.

2007—College Cost Reduction and Access Act

Increased maximum Pell Grant. Cut interest rates on subsidized Stafford loans in half. Added income-based repayments.

2010—Health Care and Education Reconciliation Act

Eliminated FFELP, and replaced with Direct Loan program. Accelerated loan forgiveness. Cut monthly payments under income based repayments.

Current StateO Defaults

O 8.8% of borrowers unable to pay loansO For every defaulting borrower, two more

fall behind in paymentsO Direct connection to unemployment

ratesO Health Care and Education

Reconciliation ActO Direct Loans programO Income-based repayment

Current State

http://studentloancrisis.files.wordpress.com/2010/10/student-debt.jpg

http://bigpicture.typepad.com/photos/uncategorized/2008/04/18/student_loan.gif

Opposing ViewpointsYES NO

• Investment• College impossible

without them• Legislation to make

loans more affordable

• Unsecured debt• Burden of debt to pay

off• Crack down on over-

charging colleges

Obama AdministrationO Affordable student loans

O Health Care and Education Reconciliation Act

O Increase funding for Pell scholarshipsO Increase largest college tax creditO Simplify financial aid application

http://www.sayeducate.com/images/iStock_000002816956XSmall.jpg

Republican Party Position

O Against SAFRAO Eliminates jobs

O Against Department of EducationO Cut college costs

Michele BachmanO Eliminate Department of EducationO Reduce debt load on studentO Increase federal loan limit

http://studentpwns.com/2011/08/13/michele-bachmann-student-loans/

http://thinkprogress.org/wp-content/uploads/2010/10/education-1.jpg

Rick PerryO Remove role of federal government

in educationO Lower college costs

O Create a bachelor’s degree program that would cost students only $10,000

http://www.eduinreview.com/blog/wp-content/uploads/2011/09/rick-perry-edu.jpg

http://www.americaforpurchase.com/wp-content/uploads/money_and_graduation.jpg

BibliographyO "Ensuring That Student Loans Are Affordable." The White House. Web. 14 Sept. 2011.

<http://www.whitehouse.gov/issues/education/higher-education/ensuring-that-student-loans-are-affordable>.

O "Federal Student Loan Programs - History." Federal Education Budget Project. New America Foundation, 10 May 2011. Web. 14 Sept. 2011. <http://febp.newamerica.net/background-analysis/federal-student-loan-programs-history>.

O Herszenhorn, David M. "Student Loan Bill Opposed by Group Packed With Ex-Clinton Aides - NYTimes.com." NYTimes.com. The New York Times, 12 Mar. 2010. Web. 14 Sept. 2011. <http://thecaucus.blogs.nytimes.com/2010/03/12/student-loan-bill-opposed-by-group-packed-with-ex-clinton-aides/>.

O "History of Student Financial Aid." FinAid! Financial Aid, College Scholarships and Student Loans. Mark Kantrowitz. Web. 14 Sept. 2011. <http://www.finaid.org/educators/history.phtml>.

O Kid, College. "Bachmann Speaks Against Dept. of Education in Recent Forum." Web log post. Student Loan Network. Edvisors, 7 Sept. 2011. Web. 14 Sept. 2011. <http://blog.studentloannetwork.com/news/bachmann-speaks-against-dept-of-education-in-recent-forum/>.

O Koerner, Heather. "Credit Cards and College - A Dangerous Mix." Opposing Views. Opposing Views, Inc., 12 May 2009. Web. 15 Sept. 2011. <http://www.opposingviews.com/i/credit-cards-and-college-a-dangerous-mix>.

O Lewin, Tamar. "Student Loan Default Rates Rise Sharply in Past Year." Editorial. The New York Times 13 Sept. 2011, New York ed.: A14. NYTimes.com. The New York Times, 12 Sept. 2011. Web. 14 Sept. 2011. <http://www.nytimes.com/2011/09/13/education/13loans.html?_r=1&scp=2&sq=student loans&st=cse>.

O Lieber, Ron. "The New Money Rules for Recent Graduates." Editorial. The New York Times 8 May 2010, New York ed.: B1. NYTimes.com. The New York Times, 7 May 2010. Web. 14 Sept. 2011. <http://www.nytimes.com/2010/05/08/your-money/08money.html?ref=studentloans&pagewanted=2>.

O "Revamping College Student Loans, Republicans Say NO." America For Purchase. Word Press, 18 Mar. 2010. Web. 14 Sept. 2011. <http://www.americaforpurchase.com/u-s-economy/revamping-college-student-loans-republicans-say-no/>.

O "Rick Perry Is a Higher-Education Visionary. Seriously." Education Sector. 25 Aug. 2011. Web. 14 Sept. 2011. <http://www.educationsector.org/publications/rick-perry-higher-education-visionary-seriously-0>.

O "Student Loan Defaults Rise Again." NYTimes.com. The New York Times, 13 Sept. 2011. Web. 14 Sept. 2011. <http://thechoice.blogs.nytimes.com/2011/09/13/student-loan-defaults-rise-again/?scp=2>.